18 May 2022
Inflation hits double-digits for the UK’s poorest families We always knew that April was going to mark a bleak milestone in the cost of living crisis – with the 54 per cent rise in the energy price cap taking effect on 1 April, increasing bills by £693 for a typical family – likely to send inflation soaring. [...] It is not just the level of inflation that standouts historically, but also speed of the rise: the two-percentage-point jump from March (Figure 1) was the biggest monthly increase since April 1980. [...] Exchange rate moves may also mean inflation rises further in the coming months – as it did in the wake of the financial crisis and the EU referendum. [...] All of this is made more difficult by the economic context The cost of living crisis is coming on the back of a prolonged period of low-income growth. [...] In the short-term, the Government should target support at those lower income households at the sharp end of the crisis.